Freeport Output Plunges After Mudslide, No Layoffs Reported

Jakarta. Freeport Indonesia has temporarily halted operations at its new copper smelter in the Java Integrated and Industrial Estate (JIIPE) in Gresik, East Java, following a disruption in concentrate supply from its Papua mine. The company says no employees will be laid off during the shutdown, and operations are expected to resume in April 2026.

PTFI President Director Tony Wenas said the stoppage stems from the interruption of concentrate deliveries after a wet ore mudslide hit the Grasberg Block Cave (GBC) underground mine in Tembagapura on Sept.

8, 2025. The incident slashed Freeport Indonesia's output to around 30 percent of normal levels, just 65,000-70,000 tons per day compared with the usual 200,000 tons. "Smelter operations have indeed stopped because concentrate supply has been disrupted, but we are not laying off employees," Tony told state news agency Antara on Wednesday. "We have rescheduled work, and only contractor numbers have been reduced because the facility has not yet reached full operational stage."

Freeport expects mining activities at GBC to resume in March 2026, with concentrate deliveries to the smelter targeted to restart in April. Until then, the Gresik team is focusing on routine maintenance to ensure the facility is technically prepared once supply returns. Advertisement

Before the disruption, smelter ramp-up progress had reached 70-80 percent and was projected to hit full capacity if operations had continued normally. "Heating up, maintenance, and neutralization activities are ongoing so that when concentrate comes in, the smelter can start operating immediately, even if gradually," Tony said. The temporary shutdown comes as the Indonesian government continues to monitor the project closely. Officials from the National Development Planning Agency (Bappenas) visited the smelter this week to ensure the country's mineral downstreaming agenda stays on track.

Freeport Indonesia's Gresik smelter employs around 2,000 workers at full capacity -- roughly 1,200 contractors and 800 full-time employees. During the construction phase, the project cumulatively involved around 40,000 construction workers. Two other underground mines unaffected by the mudslide, Deep Mill Level Zone (DMLZ) and Big Gossan, have resumed operations, though not yet at full capacity.

The recovery of GBC by March-April 2026 remains the key to normalizing concentrate supply and restoring full smelter operations.

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